The company will have exclusive rights to commercialize Loop's technology in the Asian market for a specified period, and Loop will license its technology in exchange for an annual royalty for each of the commercial plants.
("Loop"), a clean technology company whose mission is to accelerate a circular plastics economy by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and polyester fiber, and SK Geo Centric Co. Ltd. ("SKGC"), a subsidiary of the South Korean SK Group, today announced the signing of a definitive joint venture agreement ("JVA") to deploy Loop's technology to the Asian market through multiple commercial manufacturing facilities. SKGC will own 51% of the company, which will be based in Singapore, and Loop the remaining 49%. Under the agreement, the company will have exclusive rights to commercialize Loop's technology in the Asian market for a specified period, and Loop will license its technology in exchange for an annual royalty for each of the commercial plants.
The first planned commercial manufacturing facility with Infinite Loop™ technology, located in Ulsan, South Korea, will have an annual capacity to supply 70,000 metric tons per year of PET Loop™ resin for polyester fiber and packaging applications, and will be construction is expected to begin in 2023 with completion by the end of 2025. In addition to Infinite Loop™ Ulsan, the two partners have outlined plans that aim to build a minimum of three additional commercial manufacturing facilities across Asia by 2030. Loop and SKGC have partnered with SK ecoengineering, a subsidiary of the SK Group that brings a wealth of experience as an EPC contractor, for the engineering and construction of the commercial manufacturing facilities.
Asia is the world's largest market for PET plastic and polyester fiber and is at the center of global manufacturing, presenting an attractive opportunity for the company. Loop's innovative technology can bring true circularity to PET plastic and polyester fibers, helping to mitigate the global environmental effects of petrochemical overuse and plastic waste. By converting low-value PET plastic and polyester fiber waste into virgin-quality 100% recycled Loop™ PET resin, Loop's technology has the potential to transform the Asian PET plastic and polyester fiber market, helping to reduce waste. dependence on finite resources while decreasing environmental impacts, such as air and water pollution. The deployment of Loop's technology in the Asian market would bring a much-needed change to the way PET is managed and manufactured in the region, and would help meet the growing demand for recycled PET.
The signed agreement marks the next step in the commitment of both partners to reduce plastic waste and accelerate a true circular economy for plastic. This is a testament to Loop's mission to provide infinitely recyclable virgin quality Loop™ PET resin to a global marketplace. For SKGC, this company marks the beginning of a new era of sustainable and circular practices in a market that is looking for environmentally friendly solutions. This JVA represents a big step towards creating a sustainable future by increasing the availability of recycled PET across the Asian market.
"It is our great pleasure to join this significant partnership to commercialize Loop's technology in Asia. We will strive for the successful completion of the Ulsan Advanced Recycling Complex, which will serve as an important springboard for future expansion across Asia," said Kyungsoo Na. , CEO of SKGC. "Through this JV agreement, we hope that the two partners will take a giant leap towards realizing a circular plastics economy and achieving our 'Green for Better Life' vision."
“We are extremely proud to partner with SKGC to create a globally accessible and infinitely recyclable circular economy for PET plastic and polyester fiber. Loop and SKGC have worked closely together for several years and the two companies complement each other very well. yes, providing different areas of expertise to achieve our common goal of bringing an end-to-end solution with a compelling value proposition to our customer base," said Loop founder and CEO Daniel Solomita. "By expanding Loop's manufacturing footprint in Asia, our global CPG brand customers using polyester fiber for textiles will have the opportunity to incorporate Loop branded material into their products and create circularity for their textile waste by recycling it at our manufacturing facilities. ".
This press release contains "forward-looking statements" as defined in the US Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words "intend", "may", "will", "plan ", "expects", "anticipates", "should", "could", "projects", "predicts", "estimates", "intends", "believes", "expects", "potential" or "continue", the negative of said terms or similar words. These forward-looking statements include, without limitation, statements about Loop's market opportunity, its strategies, the ability to improve and expand its capabilities, competition, planned activities and expenses as Loop pursues its business plan, the adequacy of its available cash resources, regulatory compliance, plans for future growth and future operations, the size of the market Loop is targeting, market trends, and the effectiveness of Loop's internal control over financial reporting. Forward-looking statements are not guarantees of future results, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the control of Loop, and cannot be predicted or quantified, and accordingly, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, the risks and uncertainties associated with, among other things.
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